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A reverse mortgage may be the answer to your financial needs. A reverse mortgage enables senior homeowners, 62 years and older, the opportunity to convert a part of the equity in their home into tax free income without having to sell the home, give up title or take on a new monthly mortgage payment. As there are no restrictions on the use of funds, the process can be used to improve the quality of life and make your retirement years more enjoyable.

Borrowers will never, under any circumstances, resulting from a reverse mortgage be forced to leave their homes, providing they keep their home in good living condition and maintain their real estate property tax and insurance.

Reverse mortgages enable senior homeowners 62 or older to access a portion of the equity in their home without having to sell the home, give up title, or take on a new monthly mortgage payment. For more information, please contact Burl D. Greaves, the only Financial Freedom Reverse Mortgage Specialist in Lubbock. “Reverse Mortgages - That’s All We Do!” This flexibility paired with no monthly mortgage payments allows senior borrowers to use their equity for many different purposes, such as paying off debts, assisting with medical bills or renovating their homes. (more…)

1. Not knowing which mortgage fees the borrower can and cannot negotiate. Most items in a real estate transaction are negotiable. Learn about every item on the HUD-1 Settlement Statement before ever applying for a mortgage.

2. Choosing and trusting the first loan officer the borrower interviews. Shop around. Get referrals from family, friends, co-workers and others you trust who’ve recently completed a satisfactory mortgage transaction.

3. Using an interest-only or “payment option” adjustable-rate loan primarily to qualify for a more expensive house. In today’s market of slower appreciation and falling prices, such a loan could leave you with a mortgage balance higher than the value of the home. (more…)

I bumped into a loan officer today, worried that the mortgage industry was in such shambles that even wealthy home-purchasers would never be able to get loans in today’s market. His rationale was that since standards have tightened and most home-buyers are required to have at least a 5% down payment, no houses will be sold.

I tried to console this young chap but to no avail. I told him that 30 years ago people couldn’t even think of owning their home without at least 20% down. He retorted, “Back then houses were a lot cheaper so 20% down was nothing, but thanks for your positivity,” rather sarcastically. (more…)

PMI, or Private Mortgage Insurance is basically an insurance policy for the lender against the default of your mortgage. Many mortgage lenders require PM in order to give a loan that requires more than 80% funding of the home appraisal. (Example: If you are purchasing a home that appraised at $100,000, PM would be required if you were to borrow more than 80% of the value of the home, or $80,000.)

Previously, lenders would allow borrowers to avoid PMI by giving an “80/20″ or “80/15″ loan. 80% of the loan would be funded by a first mortgage, while the additional 20% would come from a home equity line of credit. This 20% home equity line would mask as a down payment. Often called in the business a piggy back loan. With today’s mortgage market in the state that it is in PMI will be much more prevalent in upcoming months than ever before. 80/20’s have been done away with and lenders are tightening up their guidelines. (more…)

WASHINGTON The Associated Press September 18, 2007 House lawmakers are planning to vote Tuesday on an overhaul of a federal agency that insures mortgages against default in an effort to help struggling homeowners avoid foreclosure.

The plan of leading House Democrats to expand the role of the Federal Housing Administration goes further than the Bush administration’s plan to ease some of the mortgage market troubles that have rattled the economy.

Both House lawmakers and the Bush administration want to allow the FHA, which insures mortgages for low- and middle-income borrowers, to back refinanced loans for borrowers who are delinquent on payments because their mortgages have reset to higher rates from low initial levels. (more…)

So you’re thinking of getting into a bigger house. You call up the real estate agent and make an appointment to go see what the market has to offer. Then you find it, the perfect “move-up” home. It’s everything you’ve ever wanted in a home unless your married, in which case it’s everything your wife has ever wanted in a home.

You’d make an offer right then and there but realize you need to sell your old home before you can by this one. You haven’t even put your old house on the market yet. What to do?

The real estate agent advises that you could make what’s called a “contingent offer”; buying the new house is ‘contingent’ on you selling the old one.

“Oops”, says the agent, “Your old home isn’t even listed yet? You may have wanted to do that before we went house hunting. Your offer is a little too ‘contingent’ for most sellers…they probably won’t take it.”

But before you give up all hope of getting into the home you want, first consider a bridge loan.

A bridge loan is a form of second trust that is collateralized by your present home in a manner that allows the proceeds to be used for closing on a new house before the old house is sold. (more…)

Renters are often in a quandary as to whether it makes sense to continue renting or buy a home. Buying a home makes more sense, particularly when taking a long-term view. Yes, even in the current hot real estate market. Renting – Advantages

Renting can have a few advantages depending on the part of the country you live in. The primary advantage is your monthly rent payment may be less than an equivalent mortgage. A secondary advantage is the fact that maintenance and improvements to the property are the responsibility of the landlord. Still, these advantages pale in comparison to the disadvantages of renting.

Renting – Disadvantages

The disadvantages of renting are significant. If you have any opportunity to purchase a home or condominium, it almost always makes sense to do so.

The biggest disadvantage of renting is the loss of value. Assume you rent a residence for $1,000 a month and you live in the residence for two years. You will have paid a total of $24,000 in rent, a pure expenditure. The $24,000 is simply gone and you will have nothing to show for it other than the time you spent in the home. Compare this to what your landlord has gained. (more…)

Can’t remember how many times I’ve been asked “What is a reverse mortgage”? Reverse mortgages are a great way to get a loan using your primary asset. As in all cases of financial lending, the flexibility comes at a price. A reverse mortgage is a loan using your house and is referred to as a “rising debt, falling equity” kind of deal.

To compare reverse mortgage to a more traditional one, the type of mortgage commonly used when buying a house can be classed as a “forward mortgage”. To qualify for forward mortgage, you must have a steady source of income. Because the mortgage is secured by the asset, if you default on the payments, your house can be taken from you. As you pay off the house, your equity is the difference between the mortgage amount and how much you’ve paid. When the last mortgage payment is made, the house belongs to you.

On the other hand a reverse mortgage process doesn’t require that the applicant have great credit, or even that they have a steady source of income. The major stipulation is that the house is owned by the applicant. Generally, there is also a minimum age required as well, the older the applicant, the higher the loan amount can be. As well, reverse mortgages must be the only debt against your house. (more…)